This Week in Emerging Market Volatility

Emerging markets were down basically in line with US markets last week. The general emerging market index in the form of the EEM was down 0.70% and the Brazilian stock market as represented by EWZ was down 1.42%. What was interesting, at least to me, was the relative performance of the respective volatility indexes. VXEEM rose almost 8%, almost twice as much as the move from VIX even though the drop in EEM was less than the drop in the S&P 500 last week (1.48%). VXEWZ also outpaced VIX rising about 5.5% even though the underlying market was down in line with the S&P 500.